Parenthood and Couples' Relative Earnings in Norway

Abstract

With the advance of the gender revolution, income dynamics in couples are changing. Nonetheless, in most Western societies, parenthood still promotes specialized gender roles. Utilizing Norwegian register data on all married and cohabiting couples born 1946-1989, we investigate possible changes in the associations between parenthood and within-couple inequality in earnings in the years 2005-2014. Precisely, using interactions and fixed effects models, we compare the development of within-couple gender gaps in earnings over time between childless couples and couples with children of different ages, and within couples before and after childbirth. Results showed that the gender gap in earnings in couples increased with the number of children and was most distinct among couples with children below 6 years. However, the association between parenthood and within-couple inequality in earnings was reduced across the study period, a development partly driven by a decreasing fatherhood premium evident from 2009 onwards. Not only women's but also men's income development is now negatively affected by having young children in the household. Our findings, thus, indicate important changes in how men and women prioritize paid labour after a childbirth.